Bank of England interest rate hike heralds aggressive inflation strategy

THE Bank of England raised interest rates a quarter point for the second month running yesterday, abandoning its gradual approach to inflationary pressures.

The Bank said in a statement that the hike in the rate to 4.5% was necessary as the global economic recovery continues and cost pressures rise.

"It marks the official death of the gradual approach and now they are stepping up the pace.